It could be because they have a legitimate dispute with GM about labor contracts. It could also be an orchestrated distraction to distract their members and the public from their own corruption. And now if anyone pokes deeper into the corruption, the UAW can accuse them of strike busting. Slimy people.
DETROIT – About 48,000 members of the United Auto Workers union went on strike early Monday as contract talks with General Motors broke down.
Union members walked out of factories and set up picket lines at 33 plants across the nation as well as 22 parts warehouses.
The strike, depending on its length, could easily cost GM hundreds of millions of dollars. The last time the union declared a strike at GM was in 2007. The two-day work stoppage was estimated to have cost the Detroit automaker more than $300 million a day.The called strike comes despite GM saying it presented a “strong offer” to the union that included the addition or retention of thousands of jobs and more than $7 billion in new investments over the next four years.
[…]
The circumstances add to the tension of already unprecedented negotiations, following UAW Region 5 Director Vance Pearson, a member of the union’s International Executive Board, being arrested and charged by federal officials Thursday with embezzlement of union funds, among other charges.
The affidavit detailing the charges also reportedly implicated UAW President Gary Jones and former UAW President Dennis Williams, whose homes were raided along with Pearson’s by FBI, IRS and Department of Labor agents two weeks ago. Pearson, who joined the UAW in 1981, succeeded Jones as director of UAW Region 5.
[…]
“This union exists to support our local unions and this strike is about our local union members,” he said. “We will not be deviated from that because that is what is in their interest, that is what they want and that is what we will do.”
I guess getting something north of $25 billion in cash plus whatever is left in GM’s obligations to their VEBA (retiree health benefit trust fund) officially converted from unsecured to senior secured debt off of an original unsecured $12 billion owed by GM to VEBA before Obama handed them control of GM isn’t enough for the UAW.
Union people are suckers. They support the lavish lifestyles of the leaders and union leaders make many times over what union worker makes.
The left goes after CEOs who make much than the line workers but forget to include union leaders who also screw the workers
Not likely that it’s ‘orchestrated….to bury corruption reports.’ Auto industry speculation is that Jones and probably Pearson will be canned before year-end.
GM is merely this year’s target. When Ford’s bonds were reduced to “junk” status, UAW knew they couldn’t hit them, and Fiat has actually been somewhat accomodating to UAW.
In addition, GM is not too well-managed. The top end is very weak, indeed. They’re low-hanging fruit.
Another factoid:
–Automotive News
That said, GM is paying a total of $63.00/hour (wage plus bennies) whereas foreign nameplates are paying $50.00/hour to their US employees.